Two Scaling Solar Projects in Senegal Advance to Construction with IFC Financing Package

Paris, July 18, 2019–IFC,
a member of the World Bank Group, has finalized financing for the first
two Scaling Solar projects in Senegal, allowing construction to start on
two solar plants that will provide 60 MWac of clean and low-cost power.
The plants – sponsored by Engie, Meridiam, and Senegalese Sovereign Wealth
Fund for Strategic Investments (FONSIS) – are expected to reduce greenhouse
gas emissions in Senegal by 89,000 tons of C02 equivalent per year, the
same as removing 17,000 cars from the road.

The financing package for the
two projects located in Kael and Kahone includes senior loans worth €38
million from IFC, the Finland-IFC
Blended Finance for Climate Program,which helps spur private
sector financing for climate change solutions in emerging markets, the
European Investment Bank, and Proparco.

Scaling Solar is a World Bank
Group program that offers competitive bidding and streamlined procurement
for grid-tied solar photovoltaic power in emerging markets. The program
is supporting the development of more than 1 gigawatt of solar power across
Africa.

Senegal’s first Scaling Solar tender attracted
significant international investor interest, receiving six bids for each
project. The tenders resulted in tariffs of 3.80 and 3.98 Euro cents per
kilowatt hour – one of the lowest prices for electricity in West Africa.

“Scaling Solar started in
Zambia with the completion of the country’s first large-scale solar plant,”
said Philippe Le Houérou,CEO
of IFC. “The program is delivering tremendous results and continues to
expand across Africa and into new regions. We are very pleased to see the
two projects in Senegal reach financial close.”

About Scaling SolarScaling Solar is a World Bank Group solution
that makes it easier for governments to quickly procure and develop large-scale
solar projects with private financing. It includes a ‘one-stop shop’
package of technical assistance, templated documents, pre-approved financing,
insurance products, and guarantees. Scaling Solar has financing support
of the Private Infrastructure Development Group, the UK's Department for
International Development, USAID’s Power Africa, the Ministry of Foreign
Affairs of the Netherlands, and the Ministry of Foreign Affairs of Denmark.
For more information, please visit www.scalingsolar.org.

About IFCIFC – a sister organization
of the World Bank and member of the World Bank Group – is the largest
global development institution focused on the private sector in emerging
markets. We work with more than 2,000 businesses worldwide, using our capital,
expertise, and influence to create markets and opportunities in the toughest
areas of the world. In fiscal year 2019, we delivered more than $19 billion
in long-term financing for developing countries, leveraging the power of
the private sector to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org